Market set to trade sideways this week

Shares prices are expected to trade sideways this week with an upward momentum on renewed interest on the equities market.

“Interest in equities in gradually returning, with the recent improvement in value turnover and net foreign buying position. This indicates positioning is in place as investors buy stocks that have been bruised by the rout,” online brokerage firm 2TradeAsia.com said.

2Tradeasia also recast its gross domestic product growth target to -8.7 percent for 2020 while 2021 and +7.8 percent for 2021.

“Meanwhile, the 2021’s recovery will pivot on improved labor market environment, return of consumer confidence and mobility, impact of reforms and stimulus packages, return of all modes of transportation and reboot of the local tourism,” it added.

First Metro Investments Corp. first vice president and research head Cristina Ulang expects the Philippine Stock Exchange Inc. to trade between 6,500 and 7,000 points by the end of the year on aggressive monetary stimulus to boost the growth of the domestic economy.

Ulang said the fiscal incentives and stimulus program being crafted by the administration as well as the implementation of the infrastructure projects would have significant impact on the recovery and restart of the economy.

The PSEi last week climbed 3.9 percent to P6,076.91, while the broader All Shares Index rose 3.7 percent to 3,596.19.

All major sub-indices ended in the green led by property, which rose 4.7 percent followed by holding firms which gained 4.6 percent, and financials which advanced 3.6 percent. The industrial index rose 3.1 percent while services and mining and oil rose added 1.3 percent and 1 percent, respectively.

Foreign investors were nets buyers for the week by P3 billion, while the average daily value traded stood at P10.7 billion from previous week’s average of P7 billion.

Weekly top price gainers were Emperador which jumped 20.6 percent to P10.98, Security Bank Corp., which climbed 8.2 percent to P98.50, and Robinsons Land Corp., which rose 7.9 percent to P14.90.

Weekly top price losers were First Gen Corp., which declined 16.3 percent P22.60, Semirara Mining and Power Corp., which fell 11.7 percent to P9.04 and Philex Mining Corp., which slumped 3.7 percent to P3.37.